Business Seems Stuck in the 90s When it Comes to the Mobile Internet

Attend any digital marketing conference and you quickly realize who the belle of the ball is these days. Everyone, from agencies, management consultants, publishers, to technology vendors, seems to be obsessed with mobile. Everyone except business, that is. For while mobile currently makes up around 16% of total Internet traffic, and its rapid growth promises to fundamentally change the web, its share of advertising spending and overall investment is significantly lower. This indicates that business may, once again, be late to recognize a major shift.

We see this reflected in the lower advertising CPM for the mobile Internet, which is currently only about 20% of desktop CPM. This is often justified by pointing out that average revenue per user (ARPU) is similarly lower for mobile users. I contend this is the same circular logic that led to the initial under-investment by brick-and-mortar business back in the 90s, when the Internet first became mainstream. This myopia on the part of business allowed many traditional players to become dis-intermediated by the likes of Amazon, eBay and Zappos. Others lost market share to nimbler competitors who adapted more quickly. The current rise of mobile may well do the same.

For let’s face it, mobile Internet users are just like desktop users, only more so. As in more educated, more urban, more influential, younger, and more affluent. So why would CPM and ARPU trail by such significant margin? Well, for one, the mobile Internet experience is currently far different surfing the Web at our desk. Even putting network limitations such as coverage and latency aside – assuming for instance that we are connected via Wi-Fi, as most tablet users are – the difference in user interface and screen size of a phone or tablet demands a different approach.

Business and advertisers alike have been slow to adapt to this new landscape and they most commonly fail due to:

Not Offering a Mobile-Optimized Experience at all

Many businesses, including even large retailers, still do not offer an online experience optimized for mobile users. I have experienced this personally in just the last week when I tried to access a national retailer site using my smart phone.

Failure to Correctly Identify Mobile Users

Even companies that have invested in a mobile site often fail due to poor browser/device detection. Incorrectly identifying mobile users and sending them to the desktop site negates any effort and investment made in developing the mobile-optimized experience.

Not Considering a Connected, Multi-Device World

Business needs to understand that users connect and share information across various devices throughout the day and they need to take this into account and plan for it. If a mobile user posts a link to Facebook using his phone, this link may later be accessed by users on a variety of devices. Hard-coding the posters device choice into the link – as I had happen to me when a friend shared this CNN article earlier today – and then taking me to the mobile site even though I am accessing it on my desktop is simply unacceptable and will lead to frustration and drop-off.

Unsuitable Back-End Systems and Data Structures

Some companies may adapt their front-end UI for mobile users but fail to consider other UX aspects. Back-end systems, data structures and cumbersome check-out processes often need to be adapted for smaller screens. A huge look-up table may work (somewhat) on the desktop, but scrolling through a list of 20-30 options proves cumbersome on a phone.

Failure to Truly Optimize for the Mobile Use Case

Mobile users often have different needs and goals than those behind a desk. For one, they’re mobile (as in away from home), so a store locator driven by ZIP code won’t work if you don’t know where you are. Similarly, mobile users are often more task-oriented and will have little patience for superfluous content or fancy imagery.

Business should recognize that the current difference in CPM and ARPU for mobile users is caused by a poor mobile user experience and ads that are simply not designed appropriately. The sooner digital marketers and eCommerce leaders accept that mobile users are not inherently different from desktop users – but that they do have different needs dictated by their device – the sooner they will adjust and refocus their investment in the mobile Internet to reflect the reality of its rapid growth.

About Daniel Backhaus

Dan has close to 15 years of experience in the field of information technology, brand development, and interactive marketing, working with brands that include Bayer AG, BMW, Daimler-Benz, Deutsche Bank, H&R Block and Wachovia. His diverse background includes service in our nation’s military, and stints at Xerox, TSYS, several technology start-ups and leading interactive agencies in Europe and the United States.
Originally from Germany, he has lived and worked in Germany, the Czech Republic, Greece and England before settling in Atlanta in 2005. A PMI-certified Project Management Professional and a Six Sigma greenbelt, his experience includes digital strategy, solution sales, new business development, enterprise systems implementation, project and program management, SEO/SEM and Web Analytics.
Dan holds a BS in Business Management from Arizona State University and an MBA with concentration in international business from the European University in Montreux, Switzerland.
The parent of three young children, Dan’s interest in environmental sustainability issues stems from concerns over their future well-being and his international background have given him an enlightened perspective on the challenges we face and the approaches other countries and societies have taken in addressing them.
Dan blogs about technology, his love of writing, interactive marketing, brand development and strategy and whatever or whoever might have pissed him off the week before.